Hedge Funds Balyasny, LMR Take Hits in a Choppy March; Schonfeld Holds Steady

Key Points:

• Several prominent hedge funds experienced losses in March, with Dmitry Balyasny's firm down 4.3% for the month and 3.8% for the year, while ExodusPoint and LMR Partners also reported declines of 4.5% and 2.4%, respectively.
• Some firms managed to limit losses, such as Schonfeld Strategic Advisors, which was flat in March and up 0.9% for the year, and Asia-based Dymon Asia and Pinpoint Asset Management, which posted monthly losses but remain positive year-to-date.
• Market volatility in early 2025 has been driven by geopolitical tensions, including strikes on Iran by American and Israeli forces, which disrupted global economies and negatively impacted hedge fund performance.
• Many macro funds suffered due to incorrect bets on falling short-term interest rates in the UK and Europe, as inflation pressures rose from increased energy prices linked to Middle East conflicts.
• The first quarter also saw a major sell-off in software stocks amid investor concerns over AI advancements and geopolitical instability, contributing to the S&P 500's worst quarterly performance since 2022 with a 4.6% decline.